What is the amount of the taxable benefit arising from the exercise of the stock options? Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer: In what year must Jessica report the taxable benefit arising from the exercise of the stock options? (2018?, 2019?, 2020?, 2021?, 2022?, 2023?) Answer: Calculate the taxable capital gains that will be included in her 2022 income tax return in connection with this disposition. Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Use the information provided in Photo 1 to complete the 3 questions. I will upvote once all 3 questions are completed.

What is the amount of the taxable benefit arising from the exercise of the stock options?
Enter your answer with 2 decimal places (do not include a comma or $ sign).
Answer:
In what year must Jessica report the taxable benefit arising from the exercise of the stock options? (2018?, 2019?, 2020?, 2021?, 2022?, 2023?)
Answer:
Calculate the taxable capital gains that will be included in her 2022 income tax return in connection with this disposition.
Enter your answer with 2 decimal places (do not include a comma or $ sign).
Answer:
Transcribed Image Text:What is the amount of the taxable benefit arising from the exercise of the stock options? Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer: In what year must Jessica report the taxable benefit arising from the exercise of the stock options? (2018?, 2019?, 2020?, 2021?, 2022?, 2023?) Answer: Calculate the taxable capital gains that will be included in her 2022 income tax return in connection with this disposition. Enter your answer with 2 decimal places (do not include a comma or $ sign). Answer:
Jessica Lam - Background Information
Jessica Lam works for a local company (that qualifies as a CCPC) and is highly regarded by her employer. As an incentive to keep her with the company,
her employer has granted her stock options to acquire common shares in the company. Jessica is arm's length to the company.
Option grant for 5,000 common shares made July 1, 2018
Exercise price is $15. The fair market value of shares on July 1, 2018 is $15
Option expiry date June 30, 2023
Jessica exercises her option grant on January 1, 2019 when the FMV of the shares is $20 per share and acquires 5,000 common shares. On June 1, 2022
Jessica sells all the shares she acquired from her option grant for $30 per share.
.
KY
.
Transcribed Image Text:Jessica Lam - Background Information Jessica Lam works for a local company (that qualifies as a CCPC) and is highly regarded by her employer. As an incentive to keep her with the company, her employer has granted her stock options to acquire common shares in the company. Jessica is arm's length to the company. Option grant for 5,000 common shares made July 1, 2018 Exercise price is $15. The fair market value of shares on July 1, 2018 is $15 Option expiry date June 30, 2023 Jessica exercises her option grant on January 1, 2019 when the FMV of the shares is $20 per share and acquires 5,000 common shares. On June 1, 2022 Jessica sells all the shares she acquired from her option grant for $30 per share. . KY .
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